A large number of Indians are estimated to have lost a cumulative Rs 1,000 crore after being cheated in the so-called Hibox application scam, in which they were offered high interest on their “investments”. The app was promoted by popular influencers on social media and YouTube, some of whom have been summoned by investigators. Celebrities such as YouTuber Elvish Yadav and comedian Bharti Singh, who have promoted the app, were summoned by the Delhi Police in connection with the alleged scam earlier this month.
Hibox ‘Investment’ Scam
Why In News
- A large number of Indians are estimated to have lost a cumulative Rs 1,000 crore after being cheated in the so-called Hibox application scam, in which they were offered high interest on their “investments”. The app was promoted by popular influencers on social media and YouTube, some of whom have been summoned by investigators. Celebrities such as YouTuber Elvish Yadav and comedian Bharti Singh, who have promoted the app, were summoned by the Delhi Police in connection with the alleged scam earlier this month.
- The alleged scam is being investigated by the Intelligence Fusion and Strategic Operations (IFSO) unit, a specialised wing of the Delhi Police focused on cyber crime, which is also looking into the role of digital payments platforms PhonePe and Easebuzz, on which the alleged scamsters operated merchant accounts.
How Did The Scammers Operate
- The modus operandi was simple and well worn. Would-be victims were invited to “invest” money through the app with the promise of extremely high returns.
- Early “investors” were rewarded with the promised amounts, which drew in more people, until one day the “returns” stopped coming and the individuals behind the app disappeared.
- “More than 30,000 people invested their hard-earned money in the Hibox app. However, the platform has since stopped releasing funds to the investors, and the companies have disappeared after closing their office in Noida,” he said.
- Sivaram, the alleged mastermind, promised investors of substantial monthly returns through the app, which was launched in February 2024.
- The app initially gave high returns, encouraging more people to invest. However, since July, the app began withholding payments, citing various reasons like technical glitches, legal troubles and GST complications.
- The alleged scammers lured the victims to invest in their app with the help of social media influencers and YouTubers. The investors were promised guaranteed returns of 1% to 5% daily, amounting to 30% to 90% monthly, said DCP (IFSO) unit Hemant Tiwari.
When Did The Alleged Scam Come To Light
- Police received complaints from 29 persons at the IFSO unit, who said they were promised guaranteed daily returns of 1 per cent to 5 per cent. “One thing that all the complainants said was they had decided to invest in Hibox after they found that the app was promoted by many social media influencers and YouTubers: Saurav Joshi; Abhishek Malhan alias Fukra Insaan; Purav Jha; Elvish Yadav; Bharti Singh; Harsh Limbachiya; Lakshay Choudhary, Adarsh Singh; Amit alias Crazy XYZ; and Dilraj Singh Rawat,” DCP Tiwari said.
About Investigation
- After details of payment gateways and bank accounts involved were collected, it was found that payment gateways Easebuzz and PhonePe were used to transfer moneys, Tiwari said.
- “Analysis of these transactions led the team to identify four accounts which were used to siphon off cheated amounts. On the basis of technical analysis and surveillance one accused, identified as J Sivaram was arrested. On analysis of bank accounts linked it was found that Rs 18 crore have been subsequently transferred in these accounts,” he said.
- Tiwari said Rs 18 crore “invested” by the victims were deposited in four accounts of Sutrulla Xpress Private Limited, registered in the name of J Sivaram, who is a director of the firm. The office space at Avoor Muthiah Street in New Washermanpet, Chennai, was leased by Sivaram in the name of Sutrulla Xpress Private Limited, Tiwari said.
Current Status Of The Investigation
- A look-out circular has been issued against the directors of Hibox, who are currently abroad.
- Tiwari said the role of Easebuzz and PhonePe are under investigation. “Involvement of Easebuzz and PhonePe employees cannot be ruled out,” he said.
